Reminiscent of India's tryst with destiny at the mid-night of August 15, 1947, Parliament's historic Central Hall will host a function on the intervening night of June 30-July 1 to ring in the nation's biggest tax reform - GST.
GST is touted as a single way to revolutionise India's indirect tax regime by being a more efficient system which will result in better tax compliance and includes more people in the formal economy.
New tax slabs under GST
The Good Services Tax Council has fixed the GST rates for products and services in four tax slabs of 5%, 12%, 18% and 28% along with additional cess of selected products and services. The all-powerful council has also exempted some products such as food grains, fresh vegetables, meat, contraceptive as well as services like education and healthcare have also been kept tax free.
Announcing the decision made by the GST Council, the Finance Minister Arun Jaitley, said there will be no inflationary impact as most of the rates which are at 31 per cent have been brought down to 28 per cent.
However, due to increased cess, some products and services will register a sharp drop in rates, while other will register price hike after GST is implemented on July 1.
Here is a look at what will be cheaper and what will be costlier after implementation of GST on July 1:
Cheaper: Foodgrains, Hair oil, Soaps, Toothpaste, Electricity, Meat, Fresh vegetables, Honey, Ketchup, Jams, Jaggery, Agarbatti, Prasadam, Kumkum, Bindi, Pappad, Contraceptives, Coal production, Life-saving drugs, All capital goods, All industrial intermediaries, Milk and curd, Sugar, Tea, Coffee, Edible oil
Expensive: Small and big automobiles, Aerated drinks, Pizza bread, Sevaiya, Condensed milk, Frozen vegetables, ACs and refrigerators, Mithai or sweets, Frozen meat, Ayurvedic or homeopathy medicines, Umbrella, Electric vehicles, Mobile phone manufacturing, Pastries and cake, Pasta, Ice cream, Betel nut, Vinegar, Sharbat, Chewing gum, Chocolates, Custard powder, Waffles containing chocolate, Pan masala and gutka, Scented Zarda and filter Khaini, Cigarettes and cigars
Cheaper: Education, Healthcare, Economy class air travel, Cab services, Train travel, Freight levy, Non-AC restaurants
Expensive: Telephone bills, Insurance and banking services, Business class air travel, Sale of newspaper space for ads, Restaurants with liquor license, Five-star hotels, Work contracts like white washing, Movie theatres